Edensoft Holdings Limited (1147) AI Stock Analysis

• Market Cap: HK$235.17M
• Dividend Yield: 1.57%
• Average Volume (3M): 2.12M
• Price to Earnings (P/E): 26.7
• Beta (1Y): 0.55
• Revenue Growth: 35.72%
• EPS Growth: 23.53%
• Country: HK
• Employees: 231
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): <0.01
• Shares Outstanding: 2,044,947,400
• 10 Day Avg. Volume: 1,085,000
• 30 Day Avg. Volume: 2,121,666
• PEG Ratio: 3.84
• Price to Book (P/B): 1.16
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.88
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: ―

The stock of Edensoft Holdings Limited scores 66, driven by strong technical indicators and solid financial growth, despite high valuation concerns and cash flow challenges. Addressing liquidity issues could enhance future prospects.

Edensoft Holdings Limited Business Overview & Revenue Model

Company Description

Edensoft Holdings Limited, an investment holding company, operates as an integrated IT solution and cloud services provider in the People's Republic of China. The company operates in three segments: IT Infrastructure Services, IT Implementation and Supporting Services, and Cloud Services. It is involved in the provision of IT infrastructure, and technical and maintenance supporting services; design of IT solutions; and development and/or implementation of solution-based software and/or hardware products. The company also offers design, management, and technical support for using cloud platforms, which include the self-developed cloud platform and other third-party cloud platforms. The company was founded in 2002 and is headquartered in Shenzhen, China. Edensoft Holdings Limited is a subsidiary of Aztec Pearl Limited.

How the Company Makes Money

Edensoft Holdings Limited generates revenue primarily through its IT infrastructure services and software development offerings. The company earns money by providing cloud computing services, which include subscription fees for access to cloud resources and platforms. Additionally, Edensoft charges for system integration services, where it helps businesses integrate various IT systems and ensure seamless operation. Software development projects also contribute significantly to the company's revenue, as clients pay for customized software solutions tailored to their specific business needs. Key partnerships with technology providers and vendors may also play a role in enhancing the company's service capabilities and revenue potential.

Edensoft Holdings Limited Financial Statement Overview

Summary

Edensoft Holdings Limited has shown strong revenue growth and improved net profit margins, alongside a solid equity base and low leverage. However, operational cash flows remain a challenge, which impacts overall financial health.

Income Statement

Edensoft Holdings Limited showed solid revenue growth of 38.88% in the latest year, with a consistent improvement in net profit margin from previous losses. The gross profit margin stood at a healthy 9.91%, and the company successfully turned a negative EBIT in 2022 into a positive EBIT margin of 1.02% in 2024. However, the EBIT and EBITDA margins remain relatively low, indicating room for operational efficiency improvements.

Balance Sheet

The company maintains a strong equity base, with a debt-to-equity ratio of 0.21, indicating low leverage and financial stability. The equity ratio of 45.88% suggests a balanced capital structure. However, the return on equity has been modest at approximately 4.00%, signaling potential for enhanced shareholder returns.

Cash Flow

Cash flow from operations was negative in recent years, reflecting challenges in cash generation despite positive net income. The absence of free cash flow growth and negative cash flow metrics highlight concerns regarding cash management and liquidity. The company needs to focus on improving operational cash flows relative to net income.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.13B	815.33M	680.32M	800.51M	690.72M
Gross Profit	112.29M	99.14M	75.56M	102.01M	71.30M
EBITDA	11.76M	11.70M	-22.22M	25.80M	23.91M
Net Income	8.02M	6.14M	-27.77M	19.43M	16.02M
Balance Sheet
Total Assets	437.65M	435.00M	323.26M	376.19M	367.89M
Cash, Cash Equivalents and Short-Term Investments	94.59M	20.78M	60.31M	120.76M	105.31M
Total Debt	41.29M	55.31M	25.66M	6.30M	7.33M
Total Liabilities	236.85M	243.42M	138.13M	167.78M	177.00M
Stockholders Equity	200.79M	191.63M	185.13M	208.40M	190.90M
Cash Flow
Free Cash Flow	94.09M	-77.70M	-93.54M	14.35M	35.22M
Operating Cash Flow	94.13M	-77.68M	-93.15M	14.52M	35.65M
Investing Cash Flow	319.00K	6.66M	12.15M	5.03M	-24.32M
Financing Cash Flow	-14.64M	22.36M	13.39M	-2.83M	76.24M

Edensoft Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1147, the sentiment is Positive. The current price of 0.12 is below the 20-day moving average (MA) of 0.12, above the 50-day MA of 0.11, and above the 200-day MA of 0.09, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 53.82 is Neutral, neither overbought nor oversold. The STOCH value of 65.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1147.

Edensoft Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1460	78 Outperform	HK$250.11M	9.73	4.67%	3.51%	7.39%	142.61%
1147	66 Neutral	HK$235.17M	26.74	4.09%	1.57%	35.72%	23.53%
8606	58 Neutral	HK$179.29M	―	-6.08%	―	8.50%	67.35%
Sector *	56 Neutral	HK$13.71B	5.12	-5.75%	5.43%	9.34%	-42.23%
8611	44 Neutral	HK$222.30M	―	-37.23%	―	14.28%	78.69%
8178	41 Neutral	HK$212.47M	―		―	―	―
8050	39 Underperform	HK$149.19M	―	-253.21%	―	79.84%	-219.70%

Edensoft Holdings Limited Corporate Events

Edensoft Holdings Unanimously Approves AGM Resolutions

Edensoft Holdings Limited held its Annual General Meeting on May 23, 2025, where all proposed resolutions were approved unanimously. The resolutions included the adoption of financial statements, approval of a final dividend, re-appointment of auditors, re-election of directors, and authorization for the board to fix directors’ remuneration, reflecting strong shareholder support and stable governance.

Edensoft Holdings to Hold Annual General Meeting with Key Resolutions on Agenda

Edensoft Holdings Limited has announced its upcoming annual general meeting scheduled for May 23, 2025, in Shenzhen, China. Key agenda items include the adoption of the 2024 financial statements, approval of a final dividend, reappointment of auditors, re-election of directors, and authorization for directors to manage share-related transactions. These decisions are poised to impact the company’s financial management and governance structure, potentially influencing shareholder value and market perception.